Bilateral trade

Bilateral trade or clearing trade is trade exclusively between two states, particularly, barter trade based on bilateral deals between governments, and without using hard currency for payment. Bilateral trade agreements often aim to keep trade deficits at minimum by keeping a clearing account where deficit would accumulate.

The Soviet Union conducted bilateral trade with two nations, India and Finland. On the Soviet side, the trade was nationalized, but on the other side, also private capitalists negotiated deals. Relationships with politicians in charge of foreign policy were especially important for such businessmen. The framework limited the traded goods to those manufactured domestically and as such, constituted a subsidy to domestic industry.

Bilateral trade was highly popular within Finnish business circles, as it allowed the commission of very large orders, additionally with less stringent requirements for sophistication or quality, if compared to Western markets. The Soviet side was motivated to participate in clearing trade because the arrangement essentially provided cheap credit. The option was to sell obligations to the international market, and pay interest in hard currency. Capital, such as icebreakers, train carriages or consumer goods, could be obtained from Finland, and the cost would simply become clearing account deficit, eventually to be paid back as e.g. crude oil, or as orders such as nuclear power plants (Loviisa I and II).

Bilateral trade

Bilateral trade or clearing trade is trade exclusively between two states, particularly, barter trade based on bilateral deals between governments, and without using hard currency for payment. Bilateral trade agreements often aim to keep trade deficits at minimum by keeping a clearing account where deficit would accumulate.

The Soviet Union conducted bilateral trade with two nations, India and Finland. On the Soviet side, the trade was nationalized, but on the other side, also private capitalists negotiated deals. Relationships with politicians in charge of foreign policy were especially important for such businessmen. The framework limited the traded goods to those manufactured domestically and as such, constituted a subsidy to domestic industry.

Bilateral trade was highly popular within Finnish business circles, as it allowed the commission of very large orders, additionally with less stringent requirements for sophistication or quality, if compared to Western markets. The Soviet side was motivated to participate in clearing trade because the arrangement essentially provided cheap credit. The option was to sell obligations to the international market, and pay interest in hard currency. Capital, such as icebreakers, train carriages or consumer goods, could be obtained from Finland, and the cost would simply become clearing account deficit, eventually to be paid back as e.g. crude oil, or as orders such as nuclear power plants (Loviisa I and II).

Latest News for: Bilateral trade

Russian Foreign MinisterSergei Lavrov says Russia has been exploring for some time using national currencies to settle bilateraltrade deals with Turkey and other countries ... The top Russian diplomat went on to say that&nbsp;Moscow favored bilateraltrade with all countries in their national currencies, rather than the dollar ... He said the issue had been raised on more than one occasion during bilateral talks....

10, the United States demanded bilateral negotiations for a free trade agreement between the two countries ...trade partners including Japan ... Although the two sides agreed on the importance of expanding bilateraltrade, the Japanese and U.S ... But it would be wrong for the Japanese government to offer to buy more weapons from the United States as a means to trim the bilateraltrade imbalance....

He also laid emphasis on better bilateraltrade relations ... Over the last five years, the bilateraltrade trajectory has been volatile ... Indirect trade (largely routed through a third country like the United Arab Emirates) is estimated by much research to be up to 10 times more — exemplifying the existence of a huge bilateraltrade potential, provided ......

sanctions, have agreed on any bilateral deal ... NON-DOLLAR TRADE ... Turkish PresidentTayyip Erdogan has said in recent public speeches that Turkey and its economic allies do not need to use the dollar to conduct bilateraltrade ... The Kremlin said the same day that Russia favoured bilateraltrade with all countries in their national currencies, rather than the dollar, but that the idea needed detailed work before being implemented....

In a tweet following the meeting, External Affairs Ministry spokesperson Raveesh Kumar said the two sides "reviewed the present state of our bilateral cooperation, particularly in the areas of trade and investment, infrastructure, health and ... India-Moldova bilateraltrade stands at around 30 million euros (approximately $34 million) as of now....

... unfair trade and investment behavior of China ... Based on these moves, he said that the US wants to hold more bargaining chips in future bilateral economic and trade negotiations to force China to make concessions on other business issues ... Therefore, he predicted this move will lead to greater uncertainties in economic and bilateraltrade ties....

During the telephonic conversation, the Saudi crown prince said Pakistan had vast trade and economic opportunities and the kingdom was keen to make investments in the country and strengthen the bilateraltrade......

Greece currently has a trade surplus with Turkey but there are fears that this could be reversed if the Turkish economy dips into recession. In 2017, total exports to Turkey surged 44.5 percent (20.7 percent excluding fuel), reaching 1.9 billion euros (879 million excluding fuel), with bilateraltrade exceeding 2.77 billion euros, based on data from the GreekEmbassy in Ankara....